Levine, House discuss revamp

• By MARSHA SHULER
• Advocate Capitol News Bureau
• Published: Dec 2, 2008 - Page: 1A - UPDATED: 12:45 a.m.

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Louisiana legislators questioned how the Jindal administration planned to pay for the proposed revamp of the state health-care program.

One of the Legislature’s top fiscal leaders, for instance, objected to the proposed use of one-time money to launch an expansion of Medicaid.

The government’s health insurance program for the poor and uninsured serves one of every four Louisiana residents today.

Gov. Bobby Jindal’s health-care restructuring plan is based on using some $350 million in nonrecurring health-care dollars to provide insurance for up to 106,000 more Louisiana adults.

The ramifications of that financing plan caused House Ways and Means Committee Chairman, state Rep. Hunter Greene, R-Baton Rouge, and other lawmakers concern during a special daylong Louisiana House health-care briefing.

Greene said the 2008 Legislature worked to eliminate using revenue not expected to recur next year to fund state expenses that need payment year after year.

Using one-time money to fund ongoing expenses creates a financial mess down the road, Greene said.

State Rep. Rick Nowlin agreed. “At some time in the future we will have to replace that money with state funds,” the Natchitoches Republican said.

State Department of Health and Hospitals Secretary Alan Levine told the House that use of the one-time money would be a wise investment in the administration’s health-care revamp plan. He said savings should start adding up to help pay the costs of expanded coverage.

But, Levine said, “That’s the choice of the Legislature.”

The $350 million pot of money is sitting in state coffers in the event Louisiana has to start paying off some $770 million that the federal government claims the state either misused or received in error.

Levine told lawmakers the Jindal administration is trying to persuade federal officials to allow the state to keep the dollars and use them to help implement the health-care revamp being proposed.

Levine said Monday that negotiations are continuing and if no resolution comes before the Bush administration leaves office next month the talks will continue with the incoming Obama administration.